Funding wave in non-bank credit: After Michlol and Payment, Altshuler Shaham raises bank capital too

The non-bank credit market continues to heat up: Following major deals by Michlol and Payment, Altshuler Shaham Finance now joins in, reporting ₪100 million in new credit facilities, highlighting the sector's growing appetite for capital.

Altshuler Shaham Finance secures a new ₪100 million credit facility from banks for a subsidiary and extends an existing ₪200 million line. The move follows recent structured financing transactions by Michlol (₪528 million) and Payment (₪100 million), underscoring a prevailing sector trend: aggressive bank capital raises to fund business expansion.

Brisk activity in the non-bank credit market continues unabated, as just one day after two significant structured financing deals, another key player joins the capital-raising drive. Altshuler Shaham Finance reported today a series of moves to secure bank financing, including establishing a new ₪100 million credit facility and extending an existing ₪200 million line. The move, alongside portfolio recycling deals by Michlol and Payment totaling approximately ₪628 million, highlights a clear trend among non-bank financing companies raising capital from the banking system to fuel accelerated growth.

Altshuler Shaham secures financing for continued growth

According to the new filing [2026-01-088280], Altshuler Shaham Finance executed two transactions with a banking institution. First, its subsidiary, Altshuler Shaham Business Credit, entered into an agreement for a new ₪100 million credit facility. The facility comprises ₪50 million as an uncommitted "on-call" line and an additional ₪50 million committed line for a one-year period. Second, the parent company, Altshuler Shaham Finance, extended its existing ₪200 million credit line through September 2027. These moves secure liquidity and financial flexibility for the company to expand its lending operations further.

Reminder: Major deals by Michlol and Payment

Altshuler Shaham's move comes immediately after two other prominent sector players reported sophisticated structured financing (securitization) transactions:

• Michlol Financing: The company reported [2026-01-087734] that its subsidiary, Michlol Real Estate Financing, will sell 95% of a construction loan portfolio valued at approximately ₪528 million to a special purpose company (SPC). The acquisition will be funded via a bank loan, with Michlol providing a 2.5% guarantee on the portfolio value. The transaction allows Michlol to free up capital from its balance sheet, repay existing bank debt, and extend new credit, thereby broadening portfolio diversification and boosting return on equity.

• Payment Financial Technologies: Concurrently, Payment reported [2026-01-087604] a structurally similar but smaller deal involving the sale of a ₪100 million loan portfolio. Executed as a "True Sale" to an SPC, the transaction fully offloads portfolio credit risk from Payment's balance sheet. Here too, funding is provided by a banking institution.

Clear trend: Banks financing competitors

The sequence of events underscores a distinct trend: rapidly growing non-bank credit providers are turning to the banking system for essential financial runway. They do so through diverse avenues—whether traditional corporate credit lines like Altshuler Shaham's or complex securitization deals that quickly recycle capital by selling future cash flows. For banks, this presents an opportunity to participate in non-bank market expansion while managing risk through structured terms and collateral. Investors, meanwhile, should monitor these firms' capacity to manage rapid expansion, maintain portfolio quality, and navigate growing reliance on bank financing.